South Korean crypto Market Maker Faces Charges in $59.6 Million Scam coin Case
In a recent development in the crypto world, South Korean prosecutors are preparing to bring a prominent crypto market maker to trial for his alleged involvement in a $59.6 million scam coin scheme. The individual, known as Park and nicknamed Jon Bur Kim, was apprehended earlier this month on suspicions of engaging in price manipulation activities.
Prosecutors believe that Park, also referred to as “the coin King,” managed to deceive around 18,000 investors and used the ill-gotten funds to purchase luxury vehicles, including a Bugatti. The accused attempted to flee the country by sea last December, but his escape plan was thwarted by adverse weather conditions, forcing his vessel to return to South Korea.
Market Maker’s Alleged Fraudulent Activities
The accused market maker had previously served a jail sentence for his attempted escape. However, he is now facing charges related to fraud, as reported by local publication Maeil Shinmun. Prosecutors claim that Park flaunted his newfound wealth on social media by showcasing his collection of luxury cars.
The case is being overseen by the Seoul Southern District Prosecutors’ Office-run Virtual Asset Crime Joint Investigation Team. Park and his associates were officially indicted on August 1, with authorities accusing Park of aiding in the creation of a fraudulent virtual currency named Podocoin.
Investigators assert that Park engaged in price manipulation tactics by orchestrating a pump-and-dump scheme with the token, amassing substantial profits in the process. Following the investigation, law enforcement officials raided Park’s properties and seized 13 high-end vehicles, including a Bugatti Divo and a Ferrari LaFerrari.
Deception of 18,000 crypto Investors
Prosecutors allege that Park had no intentions of operating a legitimate crypto business, instead focusing on artificially inflating the price of Podocoin through deceptive promotional strategies. By selling all 1 billion Podocoin tokens after falsely promoting the project, Park was able to generate a significant sum of money.
Furthermore, authorities believe that Park oversaw a dedicated team responsible for manipulating the token‘s price and managing social media channels to attract unsuspecting investors. Two other accomplices have also been charged with providing misinformation to a crypto exchange to help facilitate the listing of the fraudulent token.
Prosecution officials estimate that the seized luxury vehicles, valued at approximately $14.6 million, were stored discreetly in a rural warehouse. Additionally, investigators seized proceeds from Park’s car trading activities with both local and international buyers and sellers.
As the case progresses, the crypto community eagerly awaits further developments in this high-profile scam coin scandal and the subsequent legal proceedings against the accused market maker and his associates.